Bell Aliant to redeem $400 million of 4.95 per cent medium term notes

Bell Aliant to redeem $400 million of 4.95 per cent medium term notes
HALIFAX, June 14, 2013 /CNW/ - Bell Aliant Inc. ("Bell Aliant") (TSX:BA) today
announces the closing of the issue by Bell Aliant Regional Communications,
Limited Partnership ("Bell Aliant LP"), on an agency basis, of $400 million
principal amount of 3.54 per cent medium term notes (the "Notes"). BMO Capital
Markets, RBC Capital Markets and Desjardins Securities acted as co-lead
managers and BMO Capital Markets and RBC Capital Markets acted as joint
bookrunners for the offering.
As previously announced, the net proceeds from this issue will be used to
redeem in their entirety the 4.95 per cent medium term notes due February
26, 2014 (the "2014 Notes") and for general corporate purposes. Today, Bell
Aliant LP has given a notice to the registered holders of the 2014 Notes that
it will redeem on June 25, 2013 (the "Redemption Date"), the full $400 million
principal amount outstanding, of the 2014 Notes.
The 2014 Notes called for redemption will be redeemed on the Redemption Date
at a redemption price equal to the greater of the Canada Yield Price and their
principal amount, together with accrued and unpaid interest to, but excluding,
the Redemption Date.
Pursuant to the terms of the trust indenture governing the 2014 Notes, the
Canada Yield Price is a price equal to the price of the 2014 Notes calculated
to provide a yield to maturity equal to the Government of Canada Yield plus
0.22 per cent on the third business day prior to the Redemption Date. The
Government of Canada Yield is, on any date, the yield to maturity on such
date, compounded semi-annually, which a non-callable Government of Canada Bond
would carry if issued, in Canadian dollars in Canada, at 100 per cent of its
principal amount on such date with a term to maturity equal to the remaining
term to maturity of the 2014 Notes. The Government of Canada Yield used to
calculate the redemption price of the 2014 Notes will be the average of the
rates calculated by two registered Canadian investment dealers selected by
Bell Aliant LP.
Forward-looking statements
This news release contains forward-looking statements concerning future events
and expectations, specifically relating to the planned use of the proceeds
from the Notes issuance to redeem the 2014 Notes. These statements describe
management's expectations at June 14, 2013.These statements are based on
management's beliefs regarding future events, and are subject to risks and
uncertainties that are beyond management's control. Therefore, actual events
may differ materially from what is predicted. Assumptions made and risk
factors considered in preparing our forward-looking statements are discussed
in detail in the annual management's discussion and analysis of each of Bell
Aliant Inc. and Bell Aliant Regional Communications Inc. for the year ended
December 31, 2012, as well as in Bell Aliant Inc.'s and Bell Aliant Regional
Communications Inc.'s annual information forms, which are available at
www.bellaliant.ca or at www.sedar.com. The planned use of proceeds from
issuance of the Notes is also subject to the satisfaction of all requirements
to enable redemption of the 2014 Notes. All forward-looking statements in this
news release are qualified by these cautionary statements, and there can be no
assurance that the results or events predicted will be realized. Except as may
be required by Canadian securities laws, Bell Aliant disclaims any intention
and assumes no obligation to update or revise any forward-looking statement,
even if new information becomes available, as a result of future events or for
any other reason. Readers should not place undue reliance on any
forward-looking statements.
About Bell Aliant
Bell Aliant (TSX: BA) is one of North America's largest regional
communications providers and the first company in Canada to cover an entire
city with fibre-to-the-home (FTTH) technology with its FibreOP services.
Through its operating entities it serves customers in six Canadian provinces
with innovative information, communication and technology services including
voice, data, Internet, video and value-added business solutions. Bell Aliant's
employees deliver the highest quality of customer service, choice and
convenience.
Media Relations Sarah Dawson 888-482-5541 sarah.dawson@bellaliant.ca
Investor Relations Zeda Redden 877-487-5726 zeda.redden@bellaliant.ca
SOURCE: Bell Aliant Inc.
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CO: Bell Aliant Inc.
ST: New Brunswick
NI: TLS INTERNET SOF INTERNET PVT